FAC2601 ASSIGNMENT 1 – SEMESTER 1 OF
2022
1. Which one of the following statements is incorrect when selecting a measurement basis for an
asset, liability, income and expense while preparing financial statements that are useful to
investors, lenders and other creditors?
1.
It is necessary to consider the nature of the information that the measurement basis will produce
in both the statement of financial position and the statements of financial performance as well as
other factors;
2.
One must consider that in most cases, no single factor will determine which measurement basis
should be selected. The relative importance of each factor will depend on facts and
circumstances;
3.
The information provided must be relevant and faithfully represented what it purports to
represent but the information provided, does not and should not have to be comparable,
verifiable timely nor understandable;
Correct - (Refer to par 9 of Chapter 1 - Introduction to IFRS, 8th Edition)
4.
The information provided by a measurement basis must be useful to users of financial
statements.
1
For academic needs contact us on /0651609781
, Feedback
Your answer is correct. (Refer to par 9 of Chapter 1 - Introduction to IFRS, 8th Edition).
The correct answer is:
The information provided must be relevant and faithfully represented what it purports to
represent but the information provided, does not and should not have to be comparable,
verifiable timely nor understandable;
2
For academic needs contact us on /0651609781
2022
1. Which one of the following statements is incorrect when selecting a measurement basis for an
asset, liability, income and expense while preparing financial statements that are useful to
investors, lenders and other creditors?
1.
It is necessary to consider the nature of the information that the measurement basis will produce
in both the statement of financial position and the statements of financial performance as well as
other factors;
2.
One must consider that in most cases, no single factor will determine which measurement basis
should be selected. The relative importance of each factor will depend on facts and
circumstances;
3.
The information provided must be relevant and faithfully represented what it purports to
represent but the information provided, does not and should not have to be comparable,
verifiable timely nor understandable;
Correct - (Refer to par 9 of Chapter 1 - Introduction to IFRS, 8th Edition)
4.
The information provided by a measurement basis must be useful to users of financial
statements.
1
For academic needs contact us on /0651609781
, Feedback
Your answer is correct. (Refer to par 9 of Chapter 1 - Introduction to IFRS, 8th Edition).
The correct answer is:
The information provided must be relevant and faithfully represented what it purports to
represent but the information provided, does not and should not have to be comparable,
verifiable timely nor understandable;
2
For academic needs contact us on /0651609781
